Tow Yard Brewing Company has filed for bankruptcy, but its owners said it won't be closing. Instead, they will be "rebuilding and plan to come out a superior brewery."

The 4-year-old brewery filed for Chapter 11 bankruptcy Jan. 17 to avoid eviction from its location at 501 Madison Ave. They were set to be evicted the same week.

"The ball's in their court at this point in time," said Mike Einterz, the attorney who represents Tow Yard's landlord. "Tow Yard has their ongoing business plan and I'm not sure whether continuing in that space is beneficial or not."

Einterz said Tow Yard has been paying a below-market rate during the term of its lease, which ends at the end of February.

"(It was) really as a gesture to the owners a few years back to help them get back on their feet," he said. "The new lease would have to be at market rate, and the market rates would be considerably higher than the rent they are paying presently."

It's unclear whether Tow Yard will remain in the same location, however. Einterz said the landlord has received "several" inquiries about the space, including at least one restaurant.

"We're prepared to move on to a new tenant unless Tow Yard comes to the table with something spectacular," he said.

"As many of you have read in the media, we have filed Chapter 11 bankruptcy as we renegotiate our lease," the post said. "This does not mean that we have closed! Actually it's quite the opposite. It means that we are rebuilding and plan to come out a superior brewery. Thank you for everyone that has reached out to us and offered support. We are looking forward to many more great years."

The bankruptcy filing stops the eviction process, Tow Yard attorney KC Cohen said, as the brewery and the landlord continue with negotiating new lease terms. This business is still open and operating during negotiations, Cohen said, but future plans were unclear.

"Those plans are completely a function out of the lease," he said. "They need a place to operate."